Question

A new car costs Rs 3,60,000. Its price depreciates at the rate if 10% per year during the first 2 years and at the rate of 20% a year thereafter. What will be the price of the car after 3 years?

Answer 1

Answer: The price of the car is 2,16,000

Step-by-step explanation:

Step 1-   Total car price depriciates in the first and second year

               Percentage = 10% + 10% = 20%

               And depreciation in third year = 20%

 Now, total depreciation of the car in all three years = 20% + 20% =40%

Step 2-  Car cost = 3,60,000

               So, 40% of 360000 = 40/100 * 360000 = 144000

Step 3- Car price after three years  = 360000 - 144000

               = 2,16,000 [Answer]